The global rise in food prices, caused by a drought in the US, has increased Brazil's inflation, along with the government trying to put a stop to the currency gains. Due to bad weather conditions, the tomato industry has been affected, and has lead to an increase in the price of tomatoes. With global prices on the rise, there is less want to import goods, but with inflation in Brazil, high food prices all around is hurting its economy. Currency gains are also having a negative affect which is hurting industrial competitiveness. Consumers are finding it difficult to cope with rising food prices and in the short run will mean that a lot of their earnings are being spent on necessities and not spending on luxuries. Low unemployment is pushing up wages, and with interest rates being cut, people will most likely try and save their money.

As can be seen, there has been a drop in unemployment in the UK, falling to 2.58 million people and is shown visually on the graph. There has been a drastic change in the unemployment of 16 to 24 year olds, which will have positive outcomes in the long-run. With less young people being unemployed, they are gaining on vital years of learning that they would have previously missed out on if they had not been employed. In order to gain experience and be better workers in the future, they would need to be employed as soon as possible, and with this happening it will affect the workforce later on as they have developed useful skills to benefit their work.  Once older workers have retired, there will now be people to fill the roles of these workers. With the Olympic Games providing the boost to the economy that is greatly needed, employment is starting to rise again; however, there is the worry that this will only have an impact in the short-run, with there being temporary jobs for the unemployed that will soon no longer be needed. If this happens there could be a rise followed by a sudden drop in employment, so there is a question of whether it will benefit the unemployed at all.

Data shows that contraction in the UK has not dropped by as much as it was expected to, so could this mean that they are reaching a trough and the recession is coming to an end? Inflation is down and unemployment is falling, although the productive capacity of the economy has been affected because of a shift to part-time work. The UK  has had a flat economy over the past two years, so the lower than expected changes in GDP do not change that it is in a recession.